On March 6th, Guayaquil's acting mayor, Tatiana Coronel, officially announced the filing of a lawsuit against the law that reforms the Organic Code of Territorial Organization, Autonomy, and Decentralization (Cootad). This reform mandates that decentralized autonomous governments allocate 70% of their budget to public works and only 30% to operational expenses. The law was passed by the Legislature with 77 votes on February 20th, and Coronel has criticized it as restrictive and detrimental to municipal governance.

During a press conference held at the Guayaquil Municipality, Coronel described the new regulation as a "law of municipal suffocation," arguing that it violates the autonomy of municipalities. She articulated her disapproval of the law, emphasizing that its implications threaten the well-being and rights of citizens who depend on municipal services. This announcement highlights the ongoing tension between local government autonomy and state-imposed regulations.

The lawsuit represents a significant challenge to the central government’s authority in terms of fiscal management of local bodies. The outcome of this legal action could set a precedent for future legislative reforms and the degree of control that the national government exerts over municipal finances in Ecuador. With cities increasingly facing financial pressures, the implications of this law and the ensuing legal battle could be pivotal for local governance and public service delivery across the nation.